Everything you need to know about travel insurance

Travel insurance is an essential part of any trip. Even if you’re budget-conscious and are into cheap holidays, the peace of mind and protection that a travel insurance can provide are priceless. Should an unfortunate thing happen while you’re on vacation, your travel insurance will be there for financial and/or emergency assistance.

Why do you need a travel insurance?

Even if you’re budget-conscious and are into cheap holidays, the peace of mind and protection that a travel insurance can provide are priceless

In this article, we’ve rounded up several things that you need to know about travel insurance:

There are two types of travel insurance policies

International travel insurance when travelling outside the country, and

Domestic travel insurance which is purchased when you’re traveling within your country of residence.

Understand what’s covered

As with any other document, make sure to read the Product Disclosure Statement carefully before signing the travel insurance. The PDS covers the definition of terms, benefits and exclusions of your policy.

Some of the factors that affect the cost of the travel insurance include:

Holiday destination

Hospital bills may be more expensive in other countries. For instance, a travel insurance is more costly for those who are going to Europe, compared to those who are traveling to Vietnam.

Length of the trip

In general, it will be more expensive for people who will go on longer trips.

Activities that you plan to do

Certain activities such as snorkeling or bungee jumping may be covered automatically, while those with much higher risk such as skiing or deep scuba diving may not be part of your cover, unless you pay extra premiums.

Your age

In general, older travelers tend to make claims from an incident while on a trip.

Pre-existing medical conditions

Check with your insurer if your pre-existing medical condition, if any, will be automatically part of the coverage, or if you need to pay extra premiums.

Report any incident as soon as possible

If you lost some items or had a medical situation, take action immediately. This is important since you need the police or medical professional to respond to your needs right away. Also, the sooner you get a police report or medical certificate, the better as it is needed by your insurer.

Know how to file claims

File the necessary paperwork as requested by your insurer. Paperwork includes receipts and other documents so make sure to keep your records of ownership of items that may get lost or damaged during your trip.

Whether you’re into cheap holidays or have more than enough funds to have luxurious vacations, it is essential to get a travel insurance. You’ll never know what can happen to you and your belongings. It’s better to be safe and prepared especially when in a foreign country.

Got other ideas on travel insurance and cheap holidays? Share your tips in the comments section.

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